China Says Airlines Can Accept Boeing Aircraft

One day after news broke of temporary cuts in steep tariffs and the agreement on trade between the U.S. and China, China removed the ban on its domestic carriers accepting deliveries of Boeing airliners. Officials in Beijing have notified government agencies and the airlines that deliveries of U.S.-made aircraft can resume.

The two countries announced a truce that resulted in the U.S. slashing tariffs on Chinese imports from 145% to 30% and China cutting tariffs on U.S. products from 125% to 10%. This agreement is set to last for 90 days.

At least three Boeing airliners were returned to the U.S. while the delivery ban was in place, with other countries expressing interesting in purchasing them. Although it is not yet known what will become of those aircraft, Boeing was hesitant to send them elsewhere despite being interested in reducing inventory.

The company said that one challenge to reselling the aircraft is that the seats installed in the planes were chosen and already purchased by the Chinese airlines.

Boeing execs said during the company’s first quarter earnings call that 50 jets were planned to go to China this year, with 41 in production or pre-built.

Chinese customers are expected to take delivery of 25 of the 30 remaining 737 MAX aircraft built before 2023 that have not yet been delivered. In addition, at least four 777 freight aircraft are in production for Chinese carriers.

FMI:  www.boeing.com/